Increasing inheritance tax would be an attack on working families -Families
Dublin Mid West’s Fine Gael TD has said she is completely against a proposal by the Commission on Taxation and Welfare to increase inheritance tax.
Following reports that the Commission is set to recommend the tax-free threshold for inheritance tax should be lowered in future years, Deputy Emer Higgins has voiced her opposition to such a move, saying it would be completely unfair on all families.
“I think the proposal to increase inheritance tax is utterly appalling. I know that the families that across Lucan, Palmerstown and Clondalkin and the villages of Brittas, Newcastle and Rathcoole are already facing a cost-of-living crisis, and I believe increasing the rate of inheritance tax would unfairly place an added financial burden on people inheriting money or property from their loved ones.
“People who work all their lives to put a home over their heads and provide for their family should not be punished for their hard work when they then provide their children with something to help secure their future,” Deputy Higgins said.
“If anything, those who have paid so much in taxes and provided so much for their families should be rewarded and not punished and I join a number of my Fine Gael colleagues in calling for this to be the position in Budget 2023 so that taxes are cut and not added to,” Deputy Higgins added.
Under Capital Acquisition Tax (CAT) rules, a child can inherit €335,000 from their parents before they pay tax at 33%. Thirteen years ago, €542,544 could be inherited or gifted before paying tax at 22%.
While not putting a new threshold or rate on what should be taxed, it was reported yesterday that the Commission said the reduction in the threshold should be “substantial”. Deputy Higgins said the commission should not be proposing to penalise working families and taxing them out of their family home.
“Young people across my constituency of Dublin Mid West are following in the footsteps of their parents and are working hard to provide for their future, their families and homes of their own. Parents should not have to worry about their children paying this tax.
“Since the commission made this recommendation, locals have been getting in touch with me to express their opposition to any increase in inheritance tax and I share their opposition and will be feeding that back to my parliamentary party.
“Fine Gael wants to provide people with the comfort that their lifetime of paying taxes and working will not be undermined. We have been committed to ensuring that work pays more, and people really feel this, this is a step backwards.
“We will continue to work for and stand up for working families, particularly as we deal with high energy costs coming into winter.
“It is essential that we continue to put money back in people’s pockets and reward them with security for their children,” concluded Deputy Higgins.